Blogging Options: CBOE Morning Update

Volatility as an asset class

Boeing (BA) is down $2.70 to $74.16 in the premarket after Nippon Airways and Japan Airlines grounded their entire fleet of 787 Dreamliners following an emergency landing by an ANA 787 due to a smoke alarm in the cockpit. Overall option implied volatility of 22 is below its 26-week average of 24.

Chipotle Mexican Grill (CMG)is down $23.32 to $274 in the premarket after the company guided Q4 preliminary to EPS $1.92-$1.97, compared to consensus $2.09. Overall option implied volatility of 37 is near its 26-week average of 35.

JPMorgan (JPM) is down $0.41 to $45.94 in the premarket after reporting Q4 EPS $1.39, compared to consensus $1.16. Overall option implied volatility of 22 is below its 26-week average of 27.

Russell 2000 Index Options (RUT) closed at 884.60, above its 10-day moving average of 878.18 and its 50-day moving average of 829.62. www.cboe.com/RUT

CBOE Volatility Index (VIX) closed at 13.55, below its 10-day moving average of 13.82, and its 50-day moving average of 16.38.

SPDR S&P 500 ETF Trust (SPY) is down $0.52 to 146.55 after the World Bank lowered its 2003 global growth forecast.

Calls with increasing volume at CBOE;

SPY 1/19/2013 147 15K contracts
IWM 3/16/2013 92 11K
FB 1/19/2013 31 10K
AAPL 1/19/2013 500 9K
DELL 1/19/2013 15 8K

CPI for December unchanged

X-Food & Energy up 0.1%

Goldman reported Q4 profits of $5.60 vs 3.78 last year

January VIX settles today, we will publish closing value after the opening